Our 15th company in the Series of Best Stocks Below Rs. 50 is Infibeam Avenues Ltd.
This company is good for investing purpose or not ?
Let’s start with the Company profile
Company Profile :
Infibeam Avenues is engaged in providing software development services, maintenance, Web development, e-commerce and other ancillary services
Now Let’s check the important fundamental figures of this company. This is a small cap company with Market Cap ₹5,378cr. We can check more fundamental details below in depth:
Company Fundamental Detail :
PE Ratio: 74.37
Sector PE Ratio: 38.66
PE Ratio of this company is high but better than Sector’s PE. So it’s a Below Average PE than the peers of this company.
PB Ratio : 1.86
Sector PB Ratio : 9.31
PB Ratio of this company is low than Sector’s PB ratio. So it’s Good PB than the peers of this company.
Dividend Yield : 0.12%
Sector Dividend Yield : 1.12%
Dividend Yield of this company is Below Average than Sector. Dividend of this company is Below Average than the peers of this company.
ROE: 1.85%
ROCE: 2.36%
ROE (Return on equity) and ROCE (Return on capital equity) is Below Average
According to above data, this company is looking fundamentally average. Now We’ll check the company Financially data:
Company Financial Detail
| Year | Revenue(cr.) | Profit(cr.) |
| 2021 | 694.67 | 72.33 |
| 2020 | 705.44 | 108.00 |
| 2019 | 1,226.09 | 127.02 |
| 2018 | 870.65 | 88.22 |
We should check now liabilities of company also in the below table
Total Current & Non Current Liabilities
| 2021 | 2020 | 2019 | 2018 |
| 661.69 | 328.07 | 436.58 | 342.06 |
Liabilities of a company refers to the debt of that company. We should also aware the debt of company. In 2021, Company have 661.69 Cr. debt.
Let’s check the Free Cash flow of the company
Free Cash flow
| 2021 | 2020 | 2019 | 2018 |
| 72.44 | -32.86 | 158.83 | -89.80 |
Debt Level: Infibeam Avenues Ltd has more cash than its total debt.
Reducing Debt: Infibeam Avenues Ltd debt to equity ratio has reduced from 1.4% to 0.1% over the past 5 years.
Debt Coverage: Infibeam Avenues Ltd debt is well covered by operating cash flow (4411.8%).
Interest Coverage: Infibeam Avenues Ltd earns more interest than it pays, so coverage of interest payments is not a concern.
Share Holding Pattern
| Promotor Holding | Foreign Institution | Mutual Fund | Other Domestic Institutions | Retail & Others | |
| Jun 2021 | 30.92% | 6.97% | 0.04% | 0.00% | 62.07% |
| Mar 2021 | 30.92% | 7.59% | 0.03% | 0.00% | 61.31% |
| Dec 2020 | 30.92% | 7.13% | 0.03% | 0.00% | 61.77% |
| Sep 2020 | 30.92% | 7.05% | 0.03% | 0.00% | 61.83% |
Above table showing there is no big change in Promotors holding which is 30.92% in June 2021. FIIs invested in June 2021 with 6.97% and retail investor is 62.07%.
Investment Checklist for Infibeam Avenues Ltd.
- The company is currently profitable
- Profit margins (8%) are lower than last year (11.6%)
- Significant insider selling over the past 3 months
- Earnings are forecast to grow by an average of 51% per year for the next 3 years
- Debt level is low and not considered a risk
- Dividend is too low to be a concern
- Share price has been stable over the past 3 months
- The company’s earnings are high quality
- At least 3 years of financial data is available
- No concerning events detected
- Shareholders have not been meaningfully diluted in the past year or recently listed
- Revenue is meaningful (₹11B)
- Market cap is meaningful (₹54B)
- Infibeam Avenues does not have negative shareholders equity.
According to its historical performance we can predict stock target.
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Entry Buying Zone : Premium members can see only
Target: Premium members can see only
Time Horizon:Premium members can see only
Risk Profile: Premium members can see only
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Entry Buying Zone : 18 to 20
Target: 30 ( 50% Upside)
Time Horizon: 1 Year
Risk Profile: High Risk (Stock is 3.71x as volatile as Nifty)
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Hope you liked Our 15th company in the Series of Best Stocks Below Rs. 50. We tried to cover many important things about this company, if you think anything left to cover, you can comment us and we’ll try to cover those things also.
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